1 / 33

Change in Ohio Tax Legislation $ 96 Million $ 0.23 Rate Case Settlements $ 24 Million $ 0.06

Significant Prior Year Items Second Quarter 2005. 2Q 2005. Amount EPS. Change in Ohio Tax Legislation $ 96 Million $ 0.23 Rate Case Settlements $ 24 Million $ 0.06. Railway Operating Revenues ($ Millions). Second Quarter. Six Months. $ 4,695. $ 4,115. $ 2,392. $ 2,154.

kieran-west
Download Presentation

Change in Ohio Tax Legislation $ 96 Million $ 0.23 Rate Case Settlements $ 24 Million $ 0.06

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Significant Prior Year ItemsSecond Quarter 2005 2Q 2005 Amount EPS Change in Ohio Tax Legislation $ 96 Million $ 0.23 Rate Case Settlements $ 24 Million $ 0.06

  2. Railway Operating Revenues($ Millions) Second Quarter Six Months $ 4,695 $ 4,115 $ 2,392 $ 2,154 2005 2006 2005 2006 % Change vs. Prior Period + 11 % + 14%

  3. Railway Operating RevenueVariance Analysis2006 vs. 2005 Second Quarter Six Months 14% 11% 10 % 7 % 4 % 4 % Carloads Revenue RevenuesCarloads Revenue Revenues per Unit / Mix per Unit / Mix

  4. Railway Operating Expenses($ Millions) Second Quarter Six Months $ 3,467 $ 1,715 $ 3,120 $ 1,562 2005 2006 2005 2006 % Change vs. Prior Period + 10% + 11%

  5. Railway Operating Expense Analysis Second Quarter 2006 vs. 2005 ($ Millions) + $98 + $25 + $25 Depreciation + $13 + $4 $ -- - $12 Diesel Fuel Other Materials, Services and Rents Compensation and Benefits Casualties and Other Claims Conrail Rents and Services Net Increase $ 153 Million / 10%

  6. Diesel Fuel Cost AnalysisSecond Quarter 2006 vs. 2005($ Millions) $ 3 $ 260 $35 $ 60 $ 162 Second Qtr 2005 Reduced Hedge Benefit Second Qtr 2006 Higher Prices Increased Consumption

  7. Railway Operating Expense Analysis Second Quarter 2006 vs. 2005 ($ Millions) + $98 + $25 + $25 Depreciation + $13 + $4 $ -- - $12 Diesel Fuel Other Materials, Services and Rents Compensation and Benefits Casualties and Other Claims Conrail Rents and Services Net Increase $ 153 Million / 10%

  8. Railway Operating Expense Analysis Second Quarter 2006 vs. 2005 ($ Millions) + $98 + $25 + $25 Depreciation + $13 + $4 $ -- - $12 Diesel Fuel Other Materials, Services and Rents Compensation and Benefits Casualties and Other Claims Conrail Rents and Services Net Increase $ 153 Million / 10%

  9. Materials, Services & Rents Second Quarter 2006 vs. 2005 ($ Millions) Purchased Services $ 16 Net Increase $25 Million + 6% Materials $ 8 Equipment Rents $ 1

  10. Railway Operating Expense Analysis Second Quarter 2006 vs. 2005 ($ Millions) + $98 + $25 + $25 Depreciation + $13 + $4 $ -- - $12 Diesel Fuel Other Materials, Services and Rents Compensation and Benefits Casualties and Other Claims Conrail Rents and Services Net Increase $ 153 Million / 10%

  11. Compensation & Benefits Analysis Second Quarter 2006 vs. 2005 ($ Millions) Medical Benefits (Active and Retiree) $ 7 Wage Rates $ 6 Net Increase $13 Million + 2% T & E Hours $ 4 Payroll Taxes $ 4 Other Items $ 2 Life Insurance Costs $ 6

  12. Railway Operating Expense Analysis Second Quarter 2006 vs. 2005 ($ Millions) + $98 + $25 + $25 Depreciation + $13 + $4 $ -- - $12 Diesel Fuel Other Materials, Services and Rents Compensation and Benefits Casualties and Other Claims Conrail Rents and Services Net Increase $ 153 Million / 10%

  13. Railway Operating Expense Analysis Six Months Ended June 30, 2006 vs. 2005 ($ Millions) + $179 + $130 + $60 Depreciation Conrail Rents and Services + $3 $ -- - $3 Materials, Services and Rents Other Diesel Fuel Compensation and Benefits Casualties and Other Claims - $22 Net Increase $347 Million / 11%

  14. Diesel Fuel Cost AnalysisSix Months Ended June 30, 2006 vs. 2005($ Millions) $ 8 $ 491 $60 $ 111 $ 312 Six Months 2005 Reduced Hedge Benefit Six Months 2006 Higher Prices Increased Consumption

  15. Railway Operating Expense Analysis Six Months Ended June 30, 2006 vs. 2005 ($ Millions) + $179 + $130 + $60 Depreciation Conrail Rents and Services + $3 $ -- - $3 Materials, Services and Rents Other Diesel Fuel Compensation and Benefits Casualties and Other Claims - $22 Net Increase $347 Million / 11%

  16. Compensation & Benefits Analysis Six Months Ended June 30, 2006 vs. 2005 ($ Millions) Effects from SFAS 123(R) $ 33 Retirement Eligible - $26 Stock Options - $7 Stock-Based Compensation $ 30 Net Increase $130 Million + 11% Medical Benefits (Active & Retiree) $ 16 Retirement Agmts & Waiver Agmts $ 13 Payroll Taxes $ 13 Wage Rates $ 12 Other Stock-Based Compensation $ 11 T&E Hours $ 10 Other Items $ 8

  17. Railway Operating Expense Analysis Six Months Ended June 30, 2006 vs. 2005 ($ Millions) + $179 + $130 + $60 Depreciation Conrail Rents and Services + $3 $ -- - $3 Materials, Services and Rents Other Diesel Fuel Compensation and Benefits Casualties and Other Claims - $22 Net Increase $347 Million / 11%

  18. Materials, Services & Rents Six Months Ended June 30, 2006 vs. 2005 ($ Millions) Purchased Services $ 30 Net Increase $60 Million + 7% Materials $ 21 Equipment Rents $ 9

  19. Railway Operating Expense Analysis Six Months Ended June 30, 2006 vs. 2005 ($ Millions) + $179 + $130 + $60 Depreciation Conrail Rents and Services + $3 $ -- - $3 Materials, Services and Rents Other Diesel Fuel Compensation and Benefits Casualties and Other Claims - $22 Net Increase $347 Million / 11%

  20. Railway Operating Expense Analysis Six Months Ended June 30, 2006 vs. 2005 ($ Millions) + $179 + $130 + $60 Depreciation Conrail Rents and Services + $3 $ -- - $3 Materials, Services and Rents Other Diesel Fuel Compensation and Benefits Casualties and Other Claims - $22 Net Increase $347 Million / 11%

  21. Railway Operating Ratio(Percent) Second Quarter Six Months 75.8 73.8 72.5 71.7 2005 2006 2005 2006 % Change vs. Prior Period -1% -3%

  22. Income From Railway Operations($ Millions) Second Quarter Six Months $1,228 $ 995 $ 677 $ 592 2005 2006 2005 2006 % Change vs. Prior Period + 14% +23%

  23. Total Other Income (Expense)Second Quarter 2006 vs. 2005($ Millions) Change 2006 vs. 2005 Favorable (Unfavorable) Second Qtr 2006 Second Qtr 2005 Other Income - Net: Expenses Related to Tax Credit Investments $ (11) $ (29) $ 18 Interest Income 22 9 13 Equity in Conrail Earnings 5 8 (3) All Other 17 21 (4) Other Income - Net 33 9 24 Interest Expense on Debt (121) (126) 5 Total $ (88) $ (117) $ 29

  24. Total Other Income (Expense)Six Months Ended June 30, 2006 vs. 2005($ Millions) Change 2006 vs. 2005 Favorable (Unfavorable) Six Months 2006 Six Months 2005 Other Income - Net: Expenses Related to Tax Credit Investments $ (27) $ (52) $ 25 Interest Income 39 16 23 Gain on Sale of Property and Investments 32 20 12 Equity in Conrail Earnings 11 14(3) All Other 13 13 -- Other Income - Net 68 11 57 Interest Expense on Debt (241) (254) 13 Total $ (173) $ (243) $ 70

  25. Income Before Income Taxes($ Millions) Second Quarter Six Months $1,055 $ 752 $ 589 $ 475 2005 2006 2005 2006 % Change vs. Prior Period + 24% + 40%

  26. Provision For Income Taxes($ Millions) Second Quarter Six Months $ 375 $ 214 $ 134 $ 51 2005 2006 2005 2006 % Change vs. Prior Period + 320% + 180 %

  27. Net Income($ Millions) Second Quarter Six Months $ 680 $ 618 $ 424 $ 375 2005 2006 2005 2006 % Change vs. Prior Period -12% +10%

  28. Diluted Earnings Per Share($ Dollars) Second Quarter Six Months $ 1.61 $ 1.51 $ 1.04 $ 0.89 2005 2006 2005 2006 % Change vs. Prior Period - 14% + 7%

  29. Net Income($ Millions) Second Quarter Six Months $ 680 $ 375 $ 498 $ 304 2005* 2006 2005* 2006 % Change vs. Prior Period + 23% + 37% * Excluding effects of change in Ohio tax legislation and rate case settlements.

  30. Diluted Earnings Per Share($ Dollars) Second Quarter Six Months $ 1.61 $ 1.22 $ 0.89 $ 0.75 2005* 2006 2005* 2006 % Change vs. Prior Period + 19% + 32% * Excluding effects of change in Ohio tax legislation and rate case settlements.

  31. Reconciliation of Net IncomeJune 30, 2005($ Millions Except Per Share) Second Qtr Six Months Amount EPS Amount EPS Net Income Excluding Significant Items $ 304 $ 0.75 $ 498 $ 1.22 Change in Ohio Tax Legislation 96 0.23 96 0.23 Rate Case Settlements 24 0.06 24 0.06 Net Income – GAAP $ 424 $ 1.04 $ 618 $ 1.51 The reconciliation is posted on our web site, www.nscorp.com

More Related